E18-1B (Revenue Recognition—Point of Sale)On January 1, Jenny Company sells goods that have a cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods is $450,000, with payment due in 30 days. If Denny paid i

E18-1B (Revenue Recognition—Point of Sale)On January 1, Jenny Company sells goods that have a cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods is $450,000, with payment due in 30 days. If Denny paid immediately upon delivery, it would receive a cash discount of $5,000.

Instructions

(a) Prepare the journal entry to record this transaction at the date of sale.

(b) How much revenue should Jenny report for the entire year?